Small Business Employment Law Compliance

This playbook provides guidance for small business owners on how to navigate and comply with employment laws. It covers the critical areas of hiring practices, employee classification, and adherence to fair labor standards.

Step 1: Understand Laws

Research and gain a comprehensive understanding of the employment laws relevant to your business. This includes federal, state, and local regulations.

Step 2: Hiring Compliance

Establish hiring practices that comply with non-discrimination laws, ensuring job descriptions, interview questions, and employment tests are fair and legal.

Step 3: Classify Employees

Correctly classify workers as either employees or independent contractors based on federal and state guidelines to ensure proper tax and benefit handling.

Step 4: Minimum Wages

Adhere to the federal, state, and local minimum wage laws, paying employees at least the highest applicable rate.

Step 5: Overtime Regulations

Follow the Fair Labor Standards Act (FLSA) guidelines for overtime pay, ensuring eligible employees are compensated for any hours worked over 40 in a workweek.

Step 6: Recordkeeping

Maintain accurate employment records, including hours worked, pay rates, withholdings, and other required information, complying with FLSA recordkeeping requirements.

Step 7: Child Labor Laws

Understand and adhere to child labor laws, regulating the employment of individuals under 18 with respect to hours and hazardous occupations.

Step 8: Health and Safety

Ensure compliance with the Occupational Safety and Health Administration (OSHA) regulations, providing a safe working environment for all employees.

Step 9: Anti-Discrimination

Implement policies that uphold equal employment opportunities and prevent workplace discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.

Step 10: Employee Rights

Display mandatory posters in the workplace to inform employees of their rights under the FLSA, OSHA, and Equal Employment Opportunity Commission (EEOC).

General Notes

Legal Assistance

Consider seeking advice from an employment lawyer to ensure full compliance with complex employment laws and to navigate any legal changes.

Continued Education

Stay informed about updates and changes to employment laws by subscribing to relevant government mailing lists and attending seminars.